Two Pharmaceutical Companies Release 2023 Earnings Preliminary Reports After Chinese New Year

　　【Pharmaceutical Network Industry DynamicsAccording to the statistics from the East Money Network Data Center, since February 18, 2024, 35 listed companies in the Shanghai and Shenzhen A-share markets have disclosed their 2023 earnings快报, of which 2 are from the pharmaceuticals industry, namely Sunnyou and Suzhou Fushilai Pharmaceutical Co., Ltd.
 

　Sunnyou Medical: Net Profit Increased by 82.96% Year-on-Year in 2023
 

Sunnyou Medical released its 2023 annual earnings快报 on the evening of February 21. The revenue was approximately 745 million yuan, representing a year-on-year increase of 52.46%. The net profit attributable to shareholders of the listed company was about 230 million yuan, marking an 82.96% year-on-year increase. The net profit attributable to the parent company's owners, excluding non-recurring gains and losses, increased by 165.42% year-on-year. The basic earnings per share were 1.46 yuan, reflecting an 84.81% year-on-year increase.
 

Regarding the reasons for the change in performance, the company stated that during the reporting period, it consistently emphasized the research and development of new products, continuously enriched its rehabilitation product line, while strengthening the layout of its marketing network and the construction of its marketing system. With the elimination of factors affecting economic development and the growth in demand for rehabilitation medical services, the company achieved an increase in sales orders during the reporting period, which in turn drove rapid growth in net profit.
 

During the reporting period, the growth in total operating revenue was mainly due to the company's continuous focus on new product research and development, increasing investment in R&D, enriching the rehabilitation product line, and simultaneously strengthening the marketing network layout and marketing system construction. With the elimination of factors affecting economic development and the growth in demand for rehabilitation medical services, the company achieved an increase in sales orders.
 

In addition, during the reporting period, the growth of indicators such as operating profit, net profit attributable to the parent company's owners, net profit attributable to the parent company's owners after deducting non-recurring gains and losses, and basic earnings per share was mainly due to the increase in the company's total operating revenue during the reporting period, which drove the rapid growth of various profits.
 

Public information shows that Sunnyou mainly provides a full range of rehabilitation products and comprehensive solutions to customers in various levels of medical institutions across China, including general hospitals, rehabilitation hospitals, grassroots medical institutions, as well as elderly care facilities, disabled rehabilitation centers, and welfare institutions.
 

By the close of trading on February 21, Sunnyou Medical closed at RMB 42.38, up 3.49%, with a turnover rate of 3.04%, a trading volume of 16,000 shares, and a turnover of RMB 66.9005 million.
 

　　Fushilai: Net Profit Decreased by 36.38% Year-on-Year in 2023
 

On the evening of February 19, Suzhou Fushilai Pharmaceutical Co., Ltd. released its 2023 annual earnings快报, with operating revenue of approximately 489 million yuan, a year-on-year decrease of 13.89%; net profit attributable to shareholders of listed companies was approximately 113 million yuan, a year-on-year decrease of 36.38%; basic earnings per share were 1.2306 yuan, a year-on-year decrease of 40.35%.
 

The company stated that the main end markets (the dietary supplement sector in Europe and the United States) for its core product, lipoic acid, have entered a mature phase of full competition, with stable product demand. However, over the past three years, there has been a phenomenon of advanced depletion of overseas demand, and the inventory of channels and end customers has not yet been fully digested. The short-term decline in overseas market demand for lipoic acid has led to pressure on the pricing of the product.
 

It is worth mentioning that on February 6th, the company announced a plan to repurchase stocks at no more than 40 million yuan, with a repurchase price not exceeding 40 yuan per share. The repurchased shares will be used for implementing an equity incentive plan or an employee stock ownership plan at a suitable time in the future.
 

Public information shows that Fushilai is thioctic acid.Active Pharmaceutical IngredientsLeading enterprises, the main business of the company isPharmaceutical Intermediates, as well as the research, production, and sales of active pharmaceutical ingredients and health product raw materials.
 

As of the closing on February 21, Suzhou Fushilai Pharmaceutical Co., Ltd. was at RMB 24.58, up 1.4%, with a turnover rate of 5.56%, a trading volume of 18,800 shares, and a turnover of RMB 46.5001 million.
 

Disclaimer: In any case, the information or opinions expressed in this article do not constitute investment advice to any person.